Friday, February 16, 2018

B-corporations legal in Arizona

For those businesses wanting to go beyond our Sustainable Business Certification, consider becoming a B-Corp. B stands for Benefit and the idea is you write into your bylaws and practices that you'll keep in mind all relevant stakeholder needs, not just owners/shareholders, as you make decisions. It's a way to get around the common misperception that corporate boards have to make decisions in the short-term interests of their stockholders. That's never been true. But a B-Corp certification requires that they consider other stakeholders like employees, the communities in which the company operates, the environment, etc.

When I was in business, we became an early B-Corp. Back then, it took a couple days to finish the process. You fill out an assessment, upload relevant documents and then get audited (for us, it was over the phone.) There's also a fairly hefty fee and you have to get recertified.

The advantages is that some governmental agencies or other organizations may specify giving preference to hiring B-Corps in the same way they might earmark some projects for minority or women-owned businesses. This certification is recognized (but maybe not well known) across the country. In comparison, the Alliance certification is regional, fast, easy and free; and ours has levels of performance up to full sustainability which B Corp does not.

Here's an AZ website to provide more info:

Here's a link to B-Lab, the organization that administers the B-Corp certification:

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